Mergers, Acquisitions and Financial Results

The majority of the over 26,000 retail investors who applied for AccessKenya Initial Public Offer (IPO) are set to receive a meagre 900 shares. These are applicants who applied for a minimum 5,000 shares for Sh50,000. They are likely to end up getting Sh41,000 as refunds.

Announcing the results on Thursday, AccessKenya Group Executive Director, David Somen, said company received over 290 million applications for the 80 million shares floated for its IPO, which translated into an oversubscription rate of 262.5 per cent. He said the company now has 27,500 shareholders in its register after all its four application pools got oversubscriptions.

The employees' pool got an oversubscription rate of 29 per cent, retail investors 494 per cent (166 million shares), high net worth investors 248 per cent and qualified institutional investors 47 per cent.

Under the allocation criteria used, the retail investors would each get a minimum allocation of 100 shares plus 16 per cent of any shares applied for in excess of 100 shares. This translates to 900 shares in the case of the bulk of retail investors who had applied for 5,000. But for those who had applied for above the 5,000 shares, they stand a better chance of getting extra shares, thanks to the 16 per cent rule. The offer is expected to realise Sh800 million, but attracted a staggering Sh2.9 billion capital. The company said it would refund Sh2.1 billion to investors owing to the oversubscription.

Employees who applied for up to 10,000 shares will get full allocation plus 75 per cent of any excess shares applied for, while high net worth investors would get a minimum of 10,000 shares plus 75 per cent of any excess shares applied for. Institutional investors would get a minimum of 100,000 shares plus 54 per cent of any shares applied for in excess of 100,000 shares.

About 1.5 per cent of total applications from 428 applicants were rejected for various irregularities, notably lack of signatures, identification card numbers and agent stamps.

"Allocation letters advising applicants on the number of shares allocated together with their refund cheques will be dispatched through their respective agents for collection on or before May 28, while applicants with CDS accounts will have their allocated shares credited to their CDS accounts by the same date," the statement by the company read in part. The AccessKenya shares are expected start trading at the Nairobi Stock Exchange (NSE) on June 4. Somen said that over Sh400 million raised through the IPO would be used to finance the firm's expansion.

Group chairman, Michael Somen, paid tribute to the AccessKenya staff who have contributed to the firm's growth in its ten years of existence, saying that the high oversubscription rate was a vote of confidence from Kenyans in the company's management. The firm is set to become the only Information and Communication Technology (ICT) company to be listed at the NSE.

East African Standard